They're paying the same. The root problems are still unaddressed, which is the import taxes on electronics. If the components they bring in are still taxed ridiculously, then there's only so much savings to be had by assembling them locally.

Assembly is a small portion of the cost of making a product.

And that's the case because of inexpensive labor in China, relative to here in the U.S. If the labor costs were 10x ($17.50/hr instead of $1.75/hr), assembly would no longer be a tiny portion of the total costs. Presumably, Brazil is somewhere between.

And that's the case because of inexpensive labor in China, relative to here in the U.S. If the labor costs were 10x ($17.50/hr instead of $1.75/hr), assembly would no longer be a tiny portion of the total costs. Presumably, Brazil is somewhere between.

Brazil's minimum wage is equivalent to US$2.48, so I think probably leaning more towards China than the US if your figure is correct.

Brazil's minimum wage is equivalent to US$2.48, so I think probably leaning more towards China than the US if your figure is correct.

However as has been discussed many times it is much more expensive to manufacture in the US if not just the taxes, insurance and environmental protection as well as land value among many other considerations.

I realize that, but the likelihood of paying minimum wage in Brazil for manufacturing work is a lot higher. Average manufacturing wages easily run to $20/hr and up.

Quote:

Originally Posted by mstone

However as has been discussed many times it is much more expensive to manufacture in the US if not just the taxes, insurance and environmental protection as well as land value among many other considerations.

Yes, but I wasn't really talking about that. I really don't think these things will be made in the US, that wasn't my push here.

Really? After only a little over 4,000 posts I'm still just getting the hang of this new fangled system.

No, sorry, I was thinking you might already have started replying to the first post while I was considering what to write in the second one which was sort of an after thought, so I decided to make it two different replies.